The Value of Human Capital

December 7th, 2013
in econ_news, syndication

By Luca Benzoni and Olena Chyruk- Federal Reserve Bank of Chicago

We broadly think of ‘human capital’ as the set of knowledge, skills, health, and values that contribute to making people productive (e.g., Becker 1964 and Rosen 2008). In a free society,any contract written against future labor services is not strictly enforceable, and ownership of human capital is restricted to the person who embodies it (labor income is a non-traded asset).

Follow up:

Hence, any quantitative analysis of the value of human capital is necessarily based on the present value of a person’s future labor income flows. While intuitive, this definition is hardly operational without sufficient knowledge of the flows of earnings and wages that an individual generates by ‘renting’ his services on the labor market and appropriate discount rates to translate those cash flows into a present value.

[full page view by hitting the lower right hand corner icon]

Human Capital and Long - Run Labor Income Risk

To print Scribd document:

  1. Click "Download."
  2. Open with "Adobe Reader".
  3. Select "Print".

source: http://www.chicagofed.org/digital_assets/publications/working_papers/2013/wp2013_16.pdf















Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.












 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved